Source · Select Committees · Treasury Committee
Recommendation 2
2
Accepted
Paragraph: 23
Lack of clear plan for extending EIS and VCT sunset clauses is damaging
Conclusion
The Treasury continues to express the importance of the EIS and VCT schemes and a desire to extend their sunset clauses. The Chancellor has told us he does not see a barrier to doing so. However, despite our raising concerns repeatedly, the Treasury has not provided a clear plan and timeframe for this extension. As the April 2025 deadline draws closer, this lack of firm action is damaging given that investment relies on the certainty of such support.
Government Response Summary
The government agrees that EIS and VCT sunset clauses should be extended, and the Chancellor has publicly stated his firm intention to do so beyond April 2025. Further details will be provided at a future fiscal event.
Paragraph Reference:
23
Government Response
Accepted
HM Government
Accepted
HM Treasury agrees with the Committee that the EIS and VCT sunset clauses should be extended, and the Chancellor has stated his firm intention to extend the schemes beyond the current sunset clause on 6 April 2025. HM Treasury recognise the need to provide certainty to founders and investors and will provide further details on the schemes beyond 2025 at a future fiscal event.